Productivity Mega Deduction brings good news for restaurants
Last week, restaurants received good news reflecting one of Restaurants Canada’s main federal policy priorities with the announcement by the federal government of the new Productivity Mega Deduction.
By allowing businesses to immediately deduct the full cost of many qualifying capital investments, the Mega Deduction could help create a more favourable environment for restaurant investment—making it easier for operators to move forward with purchases and projects that may have been delayed or deprioritized amid ongoing cost pressures. Based on the details released to date, qualifying restaurant investments are expected to include commercial kitchen equipment, refrigeration, furniture and fixtures, point-of-sale systems and other technology, as well as certain leasehold improvements.
In our pre-budget submissions to Finance Canada and the House of Commons Finance Committee, we specifically recommended enhanced accelerated capital cost deductions for investments in equipment, technology and restaurant modernization. We were pleased to see that the announcement was structured to ensure our sector can take full advantage of the tax measure once the legislation is implemented.
Trade War
The Restaurants Canada team continues to meet with key federal officials on the U.S. trade war to discuss the impacts on our industry and access to support measures. We are raising concerns identified by members, particularly around the availability and cost of equipment and parts, as well as food packaging, stemming from the latest round of tariffs.
Our focus remains working with the federal government to identify the most effective response to U.S. tariffs that will protect Canada’s economy and support Canadian businesses through this trade war. We support the government’s objective through retaliatory tariffs to shift Canadian purchases away from U.S. suppliers to exert economic pressure. At the same time, we are making clear to federal officials those products where alternative domestic sources are insufficient or don’t exist.
We will keep you updated as the situation evolves. See our past communications here.
Foodservice Facts 2026 and One Table
I’m very excited for the release of our 2026 Foodservice Facts report this Thursday, September 24. This year’s Foodservice Facts brings together the most comprehensive picture of Canadian foodservice available anywhere: where the sales are, where the traffic is going, what guests are ordering, what they’re willing to pay, and what they’ll expect next.
This is the 35th edition of Foodservice Facts and will be the biggest one yet. We are also pleased to offer the full report in English and French. Keep an eye on your inbox Thursday for the official launch.
Chris Elliott, our Chief Economist and Vice-President of Research, will present the biggest takeaways from Foodservice Facts at Restaurants Canada’s One Table event on September 29, helping us drive meaningful conversation and connections among the industry’s biggest leaders. We will also present our Awards of Excellence winners, who embody the strength, creativity and tenacity that make our industry so powerful. I look forward to connecting with many of you at One Table!
Restaurants Canada team update
I’m pleased to announce that Samuel Bouchard Villeneuve is joining Restaurants Canada as our Vice President, Quebec, effective today. Samuel is an experienced government relations and public affairs professional, with a deep understanding of Quebec’s government and the province’s agri-food sector.
Samuel will be focusing on building relationships with members across the province, strengthening our engagement with the new Quebec government and other decision-makers, and ensuring that the priorities and challenges of Quebec restaurant operators are strongly represented in our advocacy.
Please join me in wishing Samuel a warm welcome. You will be hearing directly from Samuel soon!
Employment Insurance Premium for 2027
Last week, the Canada Employment Insurance Commission announced a one-cent increase in the Employment Insurance rate for 2027, at $1.64 per $100 of insurable earnings for employees and $2.30 for employers. This rate will come into effect on January 1, 2027, and is equal to the 2025 rate.
We are pleased that the government has listened to concerns from our industry about rising operating costs, keeping the rate stable for another year.
Webinar registration now open: Direct Tips and a Deep Dive into Building a Tip Committee
Managing tips and gratuities continues to be a complex area for hospitality operators, with important implications for compliance, payroll and how tipping practices are structured within your business. Following the strong response to our previous session, Restaurants Canada and Actual are bringing back this topic with a deeper, more practical look at what operators need to know—and what they need to have in place.
The webinar will be live on September 30 at 2 pm ET.
Can’t make it, but still interested? Register now and we will send you the webinar recording afterwards so you can catch up on your own time.
Kelly Higginson
